I’m sure you’re sick of hearing about the lockdown at the moment so instead I thought it might be interesting to see what certain budgets buy you in Stonnington these days.
Real estate has never been more expensive in Australia, in an absolute sense.
Some of the sold prices in our market recently are eye-watering, but with record low interest rates affordability is still better than it has been in previous cycles.
As I keep getting reminded by my Baby Boomer colleagues or parents, interest rates hit 17% in 1989.
Sounds crazy now when you can get fixed rates today at one-tenth of this.
The median house price in Melbourne back in 1989 was $117,000 and the average full time wage was $28,000, which equates to a house-price-to-income multiple of 4.1.
(Petrol was 52 cents a litre and a 30 Cent Cone at Maccas was… 30 cents. Just kidding, the 30 Cent Cone didn’t come out until 1992).
Today the median house price in Melbourne is $1,000,000 (at least it is predicted by the REIV to hit $1m in June) and the average full time wage is around $91,000, which equates to a house-price-to-income multiple of 11.
So overall affordability is well down compared to wage growth, but serviceability of mortgages is much more manageable.
So what can you buy in Stonnington these days with the following budgets? [With links]
$500,000
A good quality 1960s one bedroom apartment (46sqm internal) with a nice courtyard in a quiet side street in the heart of Armadale: 2/9 St James Road, Armadale
$1,000,000
A small brick Edwardian semi-detached two bed, one bath, no car house in a narrow one way street in Prahran. (Although this sold in November so would likely fetch more now): 4 Harvey Street, Prahran
$1,500,000
A dated contemporary townhouse on its own Title in South Yarra – three bed, three bath, one car, on 140sqm: 77 Osborne Street, South Yarra
$2,000,000
A double fronted 1930s family home on 690sqm in Malvern East near Chadstone Road: 56 Bowen Street, Malvern East
$2,500,000
A freestanding double fronted brick Victorian needing a renovation on 270sqm in a good South Yarra location, with off street parking: 91 Argo Street, South Yarra
$3,000,000
A new home site of 670sqm in a very nice Prahran street: 10 A’Beckett Street, Prahran
$4,000,000
A great quality architectural modern home on 365sqm – four bed, four bath, three car – in a great spot: 2a Mountview Road, Malvern
$5,000,000
A fully renovated period family home in the Gascoigne Estate – five bed, four bath, three car on 664sqm: 75 Coppin Street, Malvern East
The above is just a random sample of sales in Stonnington (with disclosed results) in the last six months.
There’s no point to be made here. Housing is expensive. It will continue to be expensive. It will always be expensive in Stonnington.
This is an affluent area in one of the greatest cities in the world. And lockdown or no lockdown, if you can afford to live here you are among the most privileged people in the world.
We are very grateful to work in such a thriving, premium real estate market.
Thanks for reading.
David.
David Sciola 